Posted by Jim FL on November 20, 2006 at 23:04:51:
Tommy,
In order for the bank/lender to accept a ‘short sale’, which is just taking less than what’s owed to release the lein, the barrower, cannot get a dime.
No way would a lender take less than they are owed, while the defaulted barrower makes a profit.
Lenders don’t allow this, and rightfully so.
The issue here, is simply getting the BK trustee to release the house from the BK, to allow the sale.
When they see the BK filer is not getting a profit, they might look closer to make sure there is none to be made. If that’s easy to show, then most likely, the short sale will be allowed.
The BK certainly cannot hurt the chances of the lender accepting the short sale.
The other lein, that’s a different story, and one your attorney should address.
Frankly, I’ve not had to have a BK trustee release a house we short saled, but have had them allow the sale of a house, when there was no short sale.
I am attempting to arrange a short sale for a property in Chapter 7. I understand from the bank that I must obtain permission for the sale from the bankruptcy trustee first to proceed. I will be calling him tomorrow to see what can be done. The property is also in a Housing Court Receivorship and will have a $30K lien attached, that will need clearing for there to be clear title.
Does anyone have any experience with this type of situation? Is Chapter 7 more difficult than a 13? Or just different? Any advice?
as far as i know as long as the homeowner doesnt recieve anymoney from the sale you should be ok. You run into trouble if the homeowners get the proceeds and not the trustee.